CBA sells $US3bn of bonds

DataRoom: Issue comprises $US2bn of 3-year floating rate notes, $US1 billion of 5-year fixed rate notes.

Commonwealth Bank of Australia (CBA), the nation’s biggest bank by market value, sold $US3 billion of senior unsecured notes in the US market for the first time in a year.

This morning, Australian time, CBA sold $US2 billion of three-year floating rate notes at the three month US dollar London Interbank Offered Rate plus 50 basis points. That swaps to the equivalent of the Bank Bill Swap Rate plus 75 basis points.

The $US1 billion five-year fixed rate notes were priced at the equivalent US Treasury rate plus 90 basis points. That swaps to about the Bank Bill Swap Rate plus 105 basis points equivalent.

There were 120 investors in the three-year FRN and 90 investors in the 5-year fixed note. It is CBA’s first US dollar senior benchmark trade since September 2012, reflecting its modest wholesale funding needs.

Commonwealth Bank, Citigroup Inc, JP Morgan Chase & Co and Morgan Stanley were the deal’s book runners.

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